The New Airways Pension Scheme (NAPS) recently published its Trustee’s Report & Financial Statements for the Year Ended 31 March 2025. The report details the Scheme’s financial position, investment strategy, and governance activities over the past fiscal year.
Strategic Investment Principles Agreed
As part of the 31 March 2024 actuarial valuation, the Trustee and British Airways Plc (BA) agreed on a set of guiding principles for the investment strategy to shape the Scheme’s long-term plan. The Trustee has maintained high levels of interest rate and inflation hedging to protect the strong funding position. Progress has also been made to reduce the Scheme’s allocation to illiquid assets, and strong levels of financial collateral were ensured throughout the year. (Trustee’s Report & Financial Statements, page 4)
Allocation to Less Liquid Assets Reduced
For the fiscal year ended 31 March 2025, the Scheme continued efforts to reduce its allocation to less liquid assets. Additional opportunities for further reduction have been evaluated, and several projects are ongoing. (Trustee’s Report & Financial Statements, page 10)
Asset Allocation Shifts in Fiscal Year 2025
As of 31 March 2025, the Scheme’s actual asset allocation showed shifts compared to the previous fiscal year. The allocation to Equities increased from 3.8% to 6.8%, with Passive equities rising from 3.0% to 6.0%. Private equity decreased from 4.3% to 4.0%, Alternatives from 2.9% to 2.2%, and Property from 8.0% to 6.6%. Within liability-matching assets, Diversified illiquid income increased from 10.4% to 11.4%. Bonds saw a decrease from 69.6% to 67.8%, with Corporate bonds increasing from 14.0% to 15.9% and the Liability hedging portfolio decreasing from 55.6% to 51.9%. Cash allocation slightly increased from 1.0% to 1.2%. The overall allocation to return-seeking assets remained broadly stable at 19.6% (from 19.0%), and liability-matching assets at 80.4% (from 81.0%). (Trustee’s Report & Financial Statements, page 10)
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